Social Security’s Cost-of-Living Adjustments: What Do the Numbers Tell Us? The Cost-of-Living Adjustment (COLA) for Social Security is an essential mechanism designed to ensure that benefits keep pace with inflation. Over the past decade, these adjustments have varied significantly, reflecting the economic climate and inflation rates. Notably, in 2023, beneficiaries experienced an 8.7% increase, the largest in nearly 40 years, driven by soaring inflation. In contrast, the 2024 adjustment was more subdued at 3.2%. Historically, the COLA has averaged around 2.6% over the last 20 years, indicating that this year’s…
Read MoreHow the 2.5% Social Security Increase Impacts Retirees
